What Is the Statute of Limitations on Debt in Florida?

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When a person is drowning in debt, they’ll do just about anything to get the creditors to stop calling. They may even begin to imagine the worst-case scenario – that the creditors will sue them. The good news is that those facing debt may just have to wait. While simply giving the debt enough time won’t erase it completely, it will bar the creditors from pursuing a lawsuit. There is a statute of limitations on debt in Florida, but there are a few things borrowers will need to know before they begin counting on it.

Florida’s Statute of Limitations on Debt

Wondering what the statute of limitations on debt is in Florida? The statute of limitations in Florida on debt is five years. This means that once the five-year timeline has expired, creditors can no longer file a lawsuit against the borrower to try and recover the debt. This is only true of debts that include a written agreement, though. If an oral agreement was made about the debt, the statute of limitations is reduced to four years.

This is the case for most debts in Florida. However, there are certain types of debts that have different statutes of limitations than these. These and the relevant statutes of limitations are:

• Debts incurred as a result of injuries or property damage: 4 years
• Tax liens due to unpaid property taxes: 20 years
• Court costs and fines: No statute of limitations
• Debts incurred from unpaid alimony: No statute of limitations
• Fraud: 4 years (from the time the facts giving rise to the cause of action were discovered or should have been discovered with the exercise of due diligence)

Unfortunately, in some cases, a statute of limitations on debt is tolled. It’s just as important that borrowers understand this, so they know what could keep the statute of limitations on their debt from expiring when it otherwise would have.

When Statutes of Limitations Are Tolled

There are some instances in which a statute of limitations on a debt is tolled. One of these is when the debtor takes measures to avoid the creditor completely. This does not necessarily refer to ignoring phone calls, though. It refers to any steps taken to keep the creditor from contacting the borrower at all. For example, if a borrower knows that the statute of limitations expires in six months and they move to another state to avoid the creditor, this could toll the statute of limitations to six months after the borrower moves back to Florida.

In addition, if a borrower acknowledges the debt, this could also toll the statute of limitations. For example, if a creditor phoned a borrower and the borrower answered and admitted that they knew about the debt, this could extend the statute of limitations. Likewise, any time a borrower makes a partial payment on their debt could also toll the statute of limitations. Tolling a statute of limitations only applies, though, when the debt agreement is in writing.

This doesn’t mean that borrowers should try and avoid paying their debts so that they can wait out the statute of limitations; it only means that they should be aware of instances that toll the statute and which could affect their foreclosure defense.

Verifying the Statute of Limitations

While trying to file a lawsuit against a borrower after the statute of limitations has expired is not a prohibited practice, it is likely to get thrown out of court. The courts, however, don’t keep information tracking different debts and their statutes of limitations. Verifying that the statute of limitations has run out on a debt then falls to the borrower.

To do this, the borrower must gather as much information as possible about their debt. This could include bank statements, receipts, and any documents created when they first obtained the loan. These will show when the loan was granted and the last time the debtor made a payment or acknowledged the debt.

When a borrower can show that the statute of limitations has expired on their debt, it’s possible to use this as a debt defense in court. The court will simply throw the case out, and the borrower will not have to go through litigation for the creditor to recover the debt.

Paying Debts after the Statute of Limitations Expires

Once the statute of limitations expires, it only bars a creditor from filing a lawsuit against a borrower. It does not erase the debt, and that’s very important for borrowers to understand. An expired statute of limitations may not stop the creditors from calling, although they must still do so in accordance with the law. For example, creditors still cannot contact an employer or call borrowers in the middle of the night.

More importantly, an old debt will remain on a credit report, which can keep people from obtaining new loans and possibly even gaining certain types of employment. However, there are laws about how long a debt can appear on these credit reports as well. According to the Fair Credit Reporting Act (FCRA), this time limit is seven years for the majority of debts.

Debt in Florida: At a Glance

There are several types of debt in Florida. Here’s the latest data from the Federal Reserve Bank of New York.

• Credit card debt – Florida has the 10th highest credit card debt in the nation, with a per household debt of $3,340.
• Auto debt – Florida has the 7th highest auto debt in the country, with a per household debt of $5,580.
• Student loan debt – Florida ranks 37th in the nation for student loan debt, with a per household debt of $5,140.
• Mortgage debt – Florida’s mortgage debt is the 25th highest in the country, with a per household debt of $31,980.

As of 2021, Florida has the 12th-highest debt in the United States, right after Washington, with a state debt of $28.8 billion. Florida’s debt is predicted to grow in the coming years. Its per capita debt is $1,313.48, which is the fifth-lowest per capita debt in the nation.

A Florida Debt Defense Lawyer Can Help Those Suffering from Debt

Arguing that the statute of limitations has run out on a certain debt can provide a valid debt defense in cases where a creditor has filed a lawsuit against a borrower to recover the debt. However, this isn’t the only defense available. A Fort Lauderdale debt defense lawyer can provide the necessary help to anyone who has received documents from a creditor stating they are being taken to court.

If you’re suffering from severe debt and a creditor has threatened to or already taken steps to file a lawsuit, contact the Loan Lawyers at (954) 523-HELP (4357). We know the many defenses available for these types of lawsuits, and we know how to help you with yours. We’ll review your case, advise on how Florida law applies to it, and create a solid defense to give you the best chance of success in court. We also offer free consultations, so call us today to begin discussing your case.

At Loan Lawyers, we understand what you are going through and want to help you save your home and get out of debt. We have eliminated over $100 million in debt and mortgage principal, recovered more than $50 million for our clients due to bank and debt collector violations, saved over 3,000 homes from foreclosure, and have helped more than 7,000 people eliminate debt and restore peace of mind.

Contact us for a free consultation and find out more about our money-back guarantee on credit card debt buyer lawsuits and how we may be able to help you.

This post was originally published in March 2019 and has been updated for accuracy and comprehensiveness in December 2021.